Gaza residents took advantage of a three-hour lull in Israeli bombing on Wednesday to rush into the streets and stock up on supplies.

Cars and pedestrians returned to the roads of Gaza City after Israel halted bombardment to allow humanitarian supplies into the beleaguered territory.

Queues formed outside bakeries and grocery shops reopened for the first time since Israel sent ground troops into Gaza late on Saturday after a week of aerial and naval attacks.

Others rushed to hospitals to visit injured relatives or search for loved ones.

"As soon as the three-hour truce was announced, people took advantage of the calm to go out in the street to buy food," said one Gaza resident, who asked that her name not be used.

"But the stores are empty," she added.

The Israeli military said it would observe a three-hour bombing suspension each day between 1:00pm and 4:00pm around Gaza City.

Gazans have withstood intense Israeli aerial and naval attacks that have killed nearly 700 people over the past 12 days — one of Israel's deadliest ever offensives on the crowded territory amd launched on 27 December in response to Hamas rocket fire.

"Three hours is not enough," said Mohammad Azzan (45). "We don't have water, we don't have electricity, we don't have food.

"I fear that after this pause, a big Israeli operation will follow and they will invade all of our neighbourhoods."

The Israeli foreign ministry said the army was holding its fire to give the residents of the battered territory a "humanitarian respite."

"During this time, the Palestinians will be able to acquire basic necessities, replenish stocks and seek aid from the various international organisations operating within the Gaza Strip," said a statement.

The announcement came hours after Prime Minister Ehud Olmert said Israel would open a humanitarian corridor into Gaza — a key point of an Egyptian plan to end the 12-day-old campaign.

"In order to prevent a humanitarian crisis in the Gaza Strip, Prime Minister Ehud Olmert decided to adopt a proposal by the security establishment to open a humanitarian corridor into the Gaza Strip to assist the population," said a statement from his office.

"This involves opening up geographical areas for limited periods of time during which the population will be able to receive the aid and stock up."

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AFP